March 19, 2022

For the second week in a row, Wall Street indices achieved strong gains, the largest since November 2020, as the Standard & Poor’s 500 Index rose 6.2%, compared to 5.5% for the Dow Jones, and 8.2% for the Nasdaq.

The three major indices closed higher on Friday, boosted by technology shares that were hit recently, following talks between US President Joe Biden and Chinese President Xi Jinping on the Ukraine crisis ended without major surprises.

Investors’ eyes were also on the slowdown in the rate of increase in oil prices while they are still studying the US Federal Reserve’s interest rate hike on Wednesday and its strict plan to adopt more increases aimed at countering rising inflation.

The White House said US President Joe Biden warned Chinese leader Xi Jinping during a call that there would be “consequences” if Beijing provided material support to Russia in the war in Ukraine. Both sides stressed the need for a diplomatic solution to the crisis.

While Xi called on NATO countries to engage in dialogue with Moscow, he did not blame Russia.

The Standard & Poor’s Index closed Friday’s session, up 51.88 points, or 1.18 percent, to 4,463.55 points. The Nasdaq Composite Index increased 275 points, or 2.02 percent, to 13,889.78 points, and the Dow Jones Industrial Average rose 256.26 points, or 0.74 percent, to 34737.02 points.

Europe shares

For its part, European shares rose on Friday, extending the strong gains made earlier in the week, as investors turned their attention to the peace negotiations between Russia and Ukraine, as well as the talks between the US and Chinese presidents.

The pan-European Stoxx 600 index closed up 0.9%, and technology stocks led the gains.

The benchmark index recorded its best weekly performance since November 2020 amid optimism regarding peace talks related to the conflict in Ukraine, which shook global markets, and the index closed the week up by more than 5.2%.

Boosting sentiment, Russia paid interest on $117 million in sovereign dollar bonds, reducing doubts regarding its ability to meet external debt following harsh sanctions imposed by the West.

Asian stocks

In Asia, shares in Hong Kong recorded a week, up by more than 4.17%, but closed Friday down.

The Hang Seng index fluctuated in the end of the week session, between positive and negative territory, and closed down by 0.41% at 21,412.40 points.

The index witnessed significant losses on Monday and Tuesday, before a dramatic turnaround during the next two days, with the Chinese government announcing support to ensure the stability of markets, and stocks listed abroad.

China has adhered to its “dynamic zero Covid cases” strategy, by imposing targeted closures, extensive checks and travel restrictions.

But repeated closures affecting a major port and industrial cities have put pressure on the country’s economic growth, prompting Beijing to announce a target for the growth of its gross domestic product, the weakest in decades, at 5.5 percent.

A note from the city’s virus response command center said that the new measures imposed in Shenzhen are aimed at balancing “prevention and control (the epidemic) and economic and societal development.”

Shenzhen provides supply chains for major companies that make products from iPhones to washing machines, while the largest Chinese technology companies have headquarters across the city.

The factories of the company, “Foxconn” to manufacture iPhone phones, were temporarily closed earlier in the week as a result of the closure measures that led to a massive sell-off of Chinese shares related to the technology sector listed in Hong Kong.

The Yantian port, whose three-week closure during the summer due to the epidemic exacerbated the delay in global shipping, was one of the areas where the measures were eased.

Health officials revealed that only 50.7 percent of the Chinese population over the age of 80 received two doses of the vaccine, while less than 20 percent received a third booster dose. (agencies)